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Limited Liability Companies Offer Asset Protection And Tax Benefits

By October 6, 2006June 19th, 2010Internet Lawyer

Operating your business as a limited liability company (LLC) provides you with some of the best asset protection features of a corporation combined with operational and taxation features of a partnership (or a sole proprietorship if there is just one member). Like Subchapter S corporations, limited liability companies can be subject to single income taxation (in contrast with a C corporation’s double taxation at both the corporate and shareholder level). Day-to-day operation and ownership of a LLC, however, tends to be easier because the formalities are less strict than those governing S corporations.

Of course, you should consult with your attorney and your accountant to discuss legal and tax issues before forming limited liability companies or changing the current legal form of your business.

Mike Young, Esq.

Author Mike Young, Esq.

Mike Young has been practicing business and technology law since 1994 and is an angel investor in startups. He's been an entrepreneur since 1988. To get legal help from Attorney Young, click here now or call 214-546-4247 to schedule a phone consultation.

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